Central Arizona Utility Updates Sustainability Plan

PHOENIX — The utility that provides power to Phoenix and much of the rest of central Arizona on Monday redoubled its commitment to reducing greenhouse gases, less than a week after announcing it needs to double or triple its power resource capacity to meet projected energy demand.

The Salt River Project is a community-based, not-for-profit organization that provides water and power to more than 2 million people in Arizona.

It has been, in part, through the efforts of the water-providing association, founded in 1903, and the electricity-providing district, established in 1937, that Phoenix has grown into the nation’s fifth-largest metropolitan area.

The changes to the utility’s 2035 sustainability goals approved Monday by its board of directors call for reducing the Salt River Project’s greenhouse gas emissions 82% from a 2005 baseline.

Its previous target had been a 65% reduction by 2035.

On Thursday, the utility issued an all-source request for proposals seeking projects that can provide at least 700 MW of power capacity during the highest peak energy demand periods in summer, to be online by Dec. 1, 2028. 

The utility is also seeking an additional 500 MW or more of peak electrical generating capacity by Dec. 1, 2029. 

Additionally, Salt River Project is seeking to add up to 2,500 MW of new carbon-free resources by Dec. 1, 2029.

According to the utility, in the years ahead every watt of energy it delivers will have less carbon associated with it.

Today, more than 2,300 MW of carbon-free energy — including nearly 1,000 MW of solar energy — is serving the Salt River Project’s customers.

Additionally, more than 600 MW of batteries and pumped hydro storage help it provide power during times of highest peak demand, the utility said. 

Salt River Project expects to add another 500 MW of solar, 161 MW of wind and over 600 MW of additional battery storage by the end of this year. 

These additions include a wind farm under construction north of Flagstaff, Arizona, and a solar plus battery project that will support Meta and other Salt River Project customers with clean energy.

But Water Resource Advocates, a 501(c)(3) nonprofit that advocates for climate change solutions, said in an email that the Salt River Project’s sustainability plan falls short of what’s required to limit warming to 2 degrees Celsius and avoid the worst impacts of climate change. 

According to the advocacy group, utilities now need to reduce greenhouse gas pollution by at least 80% by 2030, as compared to a 2005 baseline, in order for the United States to meet its nationally determined contribution provision of the 2021 Paris Agreement.

Water Resource Advocates says the utility should instead use a mass-based (or absolute) goal to reduce its greenhouse gas emissions, and that cap would apply to its system regardless of how many new residents arrive to its service area in the coming years.

As for its request for proposals, Salt River Project said it will evaluate and compare proposals that meet the minimum requirements identified in the RFP, including self-developed resource options. 

Salt River Project currently serves customer energy needs with a diverse fuel mix including nuclear, hydroelectric, natural gas, coal, battery storage and renewable resources including solar, wind and geothermal.

This RFP will be open until May 3, 2024, and is available through the Wood Mackenzie Supply Chain Sourcing Intelligence® platform.

Dan can be reached at [email protected] and @DanMcCue